IFC proposes $60 million financing for Vietnam's KES Group

An MDF factory of KES Group

KES Group Corporation (KES) is the largest Vietnamese producer of engineered wood panels, focusing on Medium Density Fiberboard (MDF) products and the leading provider of innovative solutions for the construction and interior industry.

The company currently has an annual MDF production capacity of 500,000 cubic metres, an annual flooring production capacity of 6.5 million sq.m and an annual melamine paper printing and dipping production capacity of 40 million sq.m.

According to IFC's disclosure on January 5, the proposed IFC financing will support the company’s vertical integration strategy, provide funding for a new warehouse and maintenance capex and working capital for MDF production. The project is expected to cost $92 million, of which will be funded by $60 million IFC loan; and $32 million from the company’s internal cash generation.

In addition, IFC is exploring an advisory opportunity to support the company on obtaining green building certification for its new warehouse and distribution showrooms.

This financing will help KES realise its vision to become one of the top five Southeast Asian companies in the field of industrial wood by 2026. At the heart of this vision is sustainability. Accordingly, KES constantly seeks and pushes the envelope on its journey to create a solution that balances the finitude of resources and the infinity of human needs sustainably.

The company has chosen the more difficult path of choosing 100 per cent natural wood fibre materials to help improve the quality of life without harming the environment.

As of present, KES owns five wood factories with an area of nearly 1,200,000 square metre and modern machinery systems. In addition, the company also boasts a closed wood production chain from input materials to finished products, ensuring good control of product quality as well as environmental and health protection.

IFC launches greenhouse gas emissions inventory and reporting manual Companies in Vietnam will find it easier to log and report their greenhouse gas (GHG) emissions thanks to the manual published by the International Finance Corporation (IFC).

IFC helped SMEs, farmers, and women in business in FY2023 Despite the recent economic challenges, climate projects, smaller businesses, women, and farmers in the Asia-Pacific region have benefited from record amounts of funding from International Finance Corporation (IFC), with Vietnam among the top five countries for long-term investment in the region.

IFC focuses on Vietnam’s transition to low-carbon model To help boost the value and competitiveness of Vietnam’s agricultural sector, the IFC a member of the World Bank Group is supporting A An Food JSC to enhance its rice production quality and sustainability. This will raise income for farmers and mills along the company’s supply chain and reduce greenhouse-gas emissions in rice farming.